re: Let’s talk weed stocks in this thread

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I read the report. Says they will need to sell more stock to keep the operation going.

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Yup - also notice they had to take a $500K loan in March... ofcourse they didn't disclose the terms or anything of merit about it. We can see they already recorded 10% interest (so 120% effective rate lol). But the more relevant details aren't known. Stated as such or not, that will have to convert out.

They are cute with the other debt - notice they issue shares to their debt holders as 'compensation' when really is it just really high interest and the equivalent of death spiral debt - but they need to confuse the masses. The obvious giveaway is shares to Ira Gaines. Anyone who has spent anytime in the microcap space knows that name and knows he is not working for LVVV - he is a lender. Period.

Interest expense in one quarter was $320K on about 1.3 million in debt - so an effective interest rate of 100%.

Revenue of $47K which is made up of.... who the hell knows as they didn't disclose. (they say revenue went up due to new nursery in one sentence and then say it went up due to distribution in another). What we do know is they show $30K of AR which means of this whopping $47K in revenue, they didn't even collect all of it. The nature of their products is not suggestive of giving credit terms so that should be interesting.

They announced taking ownership of two pods in Q1 yet no recording of them (interestingly when they announced the plans to buy them in Q2 2018 from Greenpro, they issued shares to Greenpro's owners and the revenue appears to never have made it to Greenpro itself - inside job it appears - isn't that sweet).

They accelerated the acquisition of them (lie they were bought last year) but didn't pay or accrue for them in the financials (see lie). The acceleration was due to not being able to keep up with demand, but somehow their pod of 16,000 plants a month generated jack shite during this time.

The financial statements are not compliant - they reference accounting standards that have not existed for 18 months as all they do is cut and paste from others and prior years. No sign of proofreading anything - word of the day on pg 15 "dsitrubiotn"

Why should we care about quality? Nothing to do with the financials themselves, but the story that has been sold (and parroted here) is they are 'doing it the right way'. A poster is 'confident' they will get the uplist. Yet the only external evidence we have of this company shows:

1) Horrific filings
2) Late filings
3) Sales website either is dysfunctional (best case scenario) or broken as they haven't paid their bill (this past week).
4) They do sneaky angle shots bragging about pre orders but when the rubber hits the road it is fake bull crap as it has been with these guys for a decade.
5) Who do they associate with? Torgerud is still lending them money - does it get lower than that? I outlined the accountants in a previous post. Ira Gaines mentioned above. The Greenpro screw. Rainer Poertman. The debt shenanigans... naming world reknown experts that are everything but. We could go on forever.

Why do I care so much? (a) I don't really care, but the microcap space is a passion of mine; (b) my career involves interacting with 100s of these type companies and I get to see this stuff but never have seen a platform (ala tigerdroppings) to discuss it. You guys wouldn't believe how much craziness happens with these things.

LVVV is a freaking case study on it. All the tricks and gimmicks with a huge huge cheerleading following based on hopes, dreams and lack of reality. All the signs are there; all the facts are there. Anyone who has real experience in this field can see it. It is a lot of fun to watch.

Off to Europe tomorrow - have fun gents and I hope I am proven wrong while gone.